Sheep and goat meat market in MERCOSUR

Earlier Report Observations

The sheep and goat meat market in MERCOSUR expanded from 409 thousand tons in 2018 to 444 thousand tons in 2020, primarily due to rising production volumes. During this period, an agreement enabling Argentine Patagonian sheep and beef meat to enter the Japanese market strengthened the region's export prospects, supporting external demand alongside domestic output growth.

After contracting to 421 thousand tons in 2021, the market stabilized around 427-426 thousand tons in 2022-2023. Mercosur reinforced its position as a dominant global trader of chilled and frozen sheep meat, and in 2023, a 75% surge in exports of frozen sheep meat cuts influenced domestic supply levels, contributing to the market's steady volume.

Production sheep and goat meat in MERCOSUR

In kind, 2017-2020, K t

Top producers of sheep and goat meat, 2017-2020

World map of production of sheep and goat meat, 2017-2020

MERCOSUR's sheep and goat meat production has grown for the third year in a row. In 2020, the region produced 456.4 thousand tons, marking a 5.6% increase from 2019. From 2017 to 2020, production rose by 14.9%, with an average annual growth rate of 4.7%.

Annual dynamics of production in MERCOSUR in kind, 2017-2020, K t

In value, 2017-2020, M $ US

The value of sheep and goat meat production in MERCOSUR fell for the second consecutive year. In 2020, output was valued at 2 839 million US dollars, a sharp decline of 19.7% compared to the previous year. Over the 2017-2020 period, production value dropped by 25.6%, with an average annual decrease of 9.4%. The peak value occurred in 2018 at 4 418 million US dollars. The most significant decline was in 2019 at 20.0%, while the largest increase was in 2018 at 15.7%.

Annual dynamics of production in MERCOSUR in value, 2017-2020, M $ US

Exports sheep and goat meat from MERCOSUR

Exports in kind, t

The market showed notable volatility during these years. The highest volume was recorded in 2020, with the lowest in 2018, resulting in a peak-to-trough ratio of 2 times. In 2020, MERCOSUR exported 15 776 tons of sheep and goat meat, a solid increase of 19.6% from the prior year. The minimum volume was 7 708 tons in 2018. The largest decline occurred in 2018 at 39.2%, while the biggest increase was in 2019 at 71.1%.

Annual dynamics of product's exports from MERCOSUR in kind, 2017-2020, t

From 2017 to 2020, export destinations for sheep and goat meat were quite diverse. China accounted for 42.7% of exports in volume, followed by the Netherlands at 2.7% and Spain at 2.5%. Together, these three countries represented 48.0% of total flows, with no single partner dominating the market.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from MERCOSUR in kind, 2017-2020

Exports in value, K $ US

The value of sheep and goat meat exports from MERCOSUR increased for the third consecutive year. In 2020, exports reached 82 002 thousand US dollars, up 7.8% from the previous year. Between 2017 and 2020, export value grew by 18.2%, equivalent to an annualized rate of 5.7%.

Annual dynamics of product's exports from MERCOSUR in value, 2017-2020, K $ US

Between 2017 and 2020, MERCOSUR's sheep and goat meat exports were distributed across many markets. Even the top destinations—China, the Netherlands, and Canada—combined for only 42.3% of total export value, highlighting the fragmented nature of trade.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from MERCOSUR in value, 2017-2020

Imports sheep and goat meat to MERCOSUR

Imports in kind, t

MERCOSUR's imports of sheep and goat meat declined for the second year in a row. In 2020, the region imported 2 972 tons, a decrease of 37.6% compared to 2019. From 2017 to 2020, import volumes fell by 54.8%, with an average annual drop of 23.3%. The peak volume was 6 769 tons in 2018. The largest increase occurred in 2018 at 2.9%.

Annual dynamics of product's imports to MERCOSUR in kind, 2017-2020, t

During 2017-2020, Chile was a key player in MERCOSUR's sheep and goat meat imports, accounting for 8.5% of total volume.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to MERCOSUR in kind, 2017-2020

Imports in value, K $ US

MERCOSUR's imports of sheep and goat meat in value terms declined for the second consecutive year. In 2020, imports totaled 21 610 thousand US dollars, reflecting a 33.6% contraction from the previous year. Over the 2017-2020 period, import value decreased by 47.1%, with an average annual decline of 19.1%. The highest value was recorded in 2018 at 49 123 thousand US dollars. The most significant drop was in 2019 at 33.7%, while the largest increase was in 2018 at 20.1%.

Annual dynamics of product's imports to MERCOSUR in value, 2017-2020, K $ US

From 2017 to 2020, Chile and New Zealand were the main suppliers of sheep and goat meat to MERCOSUR, together accounting for 11.7% of total import value.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to MERCOSUR in value, 2017-2020